Corn, soybeans, wheat being moved by weather, exports

Grain & OIlseeds Report

Corn: Right now there are no major concerns in the 15-day forecast. NOAA updated its July outlook with normal temps and normal rains through the entire month.

While $5.00 did hold Monday in December corn, it is now likely only to act as temporary support for this corn market. Bulls can look for a short-term bounce if exports are done or if weather concerns arrive, but for now the bears are in full control.

As long as corn is using 97+ million acres, history tells us that it is dangerous to trade against the numbers that USDA gives us. Look for weather concerns to arrive at some point offering support but otherwise look for a continued grind lower…Ryan Ettner

Soybeans: Export inspections came in at 4.518 million bushels, within the trade’s expected range of 2.0 to 6.0 million bushels. The tight situation in the old-crop beans should continue to provide support for the old crop beans and bulls spreads as it looks like we still have some rationing to do to make sure we do not run out of beans.

As for new crop beans, Allendale has a long-term bearish view of for the new crop beans and is currently looking for a “fall low” at $10.54. We continue to recommend producers use rallies to market new-crop beans.

As a reminder, the markets will be trading a shortened week due to the 4th of July holiday. The markets close at noon on Wednesday and will reopen on Friday morning July 5th at 8:30 A.M…Jim McCormick

Wheat:

Economic and political turmoil in Egypt could keep them out of the world wheat market for the next few weeks.

Spring wheat good-to-excellent ratings were down 2% from last week at 68% this week. The winter wheat harvest is now 43% complete, which is up from 20% last week but down from the 5-year average of 52%.

September Chicago wheat continues to make new lows, which could lead to test support of 625’0 from June 2012… Alex Bassett

About the Author

Ryan Ettner is a registered commodities broker and grains analyst at Allendale, Inc. Steve Georgy is a Sr. Broker/Manager at Allendale, Inc. Jim McCormick is Senior Broker/Manager at Allendale, Inc. Allendale is registered with the CFTC and NFA and is a member of the NIBA. www.allendale-inc.com